Germany must oppose UniCredit's takeover of Commerzbank, Reuters staff say

By Tom Sims and Christian Kraemer

FRANKFURT (Reuters) – Workers at Commerzbank and a prominent trade union on Friday urged the German government to oppose a takeover of Germany's Italian bank UniCredit as workers fear major job losses if the deal goes through.

A joint statement by the works council of Commerzbank (ETR:) and the Verdi union shows strong opposition however by workers to possible links between the banks.

The two organizations say they are asking the government to “cooperate with the workers for a strong and independent Commerzbank”.

The appeal comes days after the Italian bank announced it had bought a 9% stake in Commerzbank – from the German government and on the open market – and its chief said it wanted to explore a merger.

The German government, which already owns a 12% stake in Commerzbank, will play a major role in any possible deal.

“We ask the German government not to make hasty decisions regarding the sale of its shares,” said Uwe Tschaege, chairman of Commerzbank's works council.

The German government is “closely considering” the issue, a government spokesman said in response to the demands of workers and unions.

UniCredit was not immediately available for comment and Commerzbank did not immediately respond.

Commerzbank, with more than 25,000 business customers, almost a third of Germany's foreign trade payments and more than 42,000 employees, is the heart of the German economy.

Italy's takeover interest has already caused a backlash and is embarrassing for the German government.

UniCredit's swoop is the most ambitious attempt yet at European banking integration, but it faces major political obstacles in Germany.

German Finance Minister Christian Lindner, who is the minister in charge of Commerzbank, said on Thursday that the government does not want to remain permanently invested in the bank.

But the government is not currently planning further sales, sources told Reuters, and Commerzbank has also asked the government to keep its stake for now.